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I'm leasing a 2016 Toyota Corolla for $397 a month and I want out because I'm leaving for military.

I put no money down on this car, and my credit was a little less than fair when I leased it. There is currently 17,000 miles on the car and it is a three year, 36,000 mile lease. The lease ends OCT 2018, meaning that there is about 17 months left until maturity.

I have been reading a lot about swap-a-lease in these forums and have decided for myself that I have a fair chance of successfully finding someone to take over my lease.

I know the payments are a little high, but I figured that since there are only ~17 months left and 19,000 usable miles, someone could see the benefit of taking over this vehicle. Not to mention, Toyota financial does not charge a lease transfer fee. (If they decide to charge, I will cover the fee for the buyer).

I'm most likely gonna take a gamble and use swap a lease regardless, what do you guys think?

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I'd have to say yes, given OP explicitly stated it wouldn't be Active Duty. Unless OP is misinformed.

jaytrader (Feb. 05, 2017 @ 8:39a) |

Only in outlier cases.  For example, the US Army hires a Soldier in the Army Reserves as a contractor... the contractor ... (more)

phitchow (Feb. 05, 2017 @ 9:24a) |

It is important to note that what SCRA considers "Active Duty" and what the ARMY considers active duty (in terms of earn... (more)

RedWolfe01 (Feb. 05, 2017 @ 10:23a) |

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You would need to put several thousand dollars in the swapees hand at transfer

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Isn't it 22 months between 01/2017 and 10/2018? 19K miles for $400*22=$8,800 sounds rather expensive.

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Matr0skin said:   Isn't it 22 months between 01/2017 and 10/2018? 19K miles for $400*22=$8,800 sounds rather expensive.

You're absolutely right. They guy from swap a lease told me it was 17 months and I didn't even notice the mistake he made. That's my fault.

Well... this changes everything

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bc3000 said:   Does any of this apply to your situation?

http://www.consumerfinance.gov/askcfpb/889/i-am-military-and-i-h...


Yes, but through a loop hole, which they would probably discover and prevent me from following through with the termination. I am in the army reserve right now and my reporting unit is in California where I live, I am being sent from my unit to Northern California for a little over a year, however it's for long term training, I'll still be assigned to my army reserve unit and won't technically be considered active duty.

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danielaaron said:   I'm leasing a 2016 Toyota Corolla for $397 a month and I want out because I'm leaving for military.
 

  $397 for a Corolla lease sounds pricey; ~14k over three years. I have not checked priced recently but am assuming a new one can be had for ~20k. 70% of full price for 3 year lease on a Corolla?

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fwuser12 said:   
danielaaron said:   I'm leasing a 2016 Toyota Corolla for $397 a month and I want out because I'm leaving for military.
  $397 for a Corolla lease sounds pricey; ~14k over three years. I have not checked priced recently but am assuming a new one can be had for ~20k. 70% of full price for 3 year lease on a Corolla?

  I'm guessing that OP rolled negative equity into the contract. I didn't think you could do that, but I think that has to be the explanation. 

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stanolshefski said:   
fwuser12 said:   
danielaaron said:   I'm leasing a 2016 Toyota Corolla for $397 a month and I want out because I'm leaving for military.
  $397 for a Corolla lease sounds pricey; ~14k over three years. I have not checked priced recently but am assuming a new one can be had for ~20k. 70% of full price for 3 year lease on a Corolla?

  I'm guessing that OP rolled negative equity IMO the contract. I didn't think you could do that, but I think that has to be the explanation. 

  He mentioned poor credit and apparently bad judgement.  The dealer baked in lots of profit and OP signed away.. Nobody will do the swapalease with him. Corollas are a $200-250 month lease all year long and he would need to add $2000 incentive to get someone to consider it. 

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danielaaron said:   
bc3000 said:   Does any of this apply to your situation?

http://www.consumerfinance.gov/askcfpb/889/i-am-military-and-i-h...


Yes, but through a loop hole, which they would probably discover and prevent me from following through with the termination. I am in the army reserve right now and my reporting unit is in California where I live, I am being sent from my unit to Northern California for a little over a year, however it's for long term training, I'll still be assigned to my army reserve unit and won't technically be considered active duty.

  
You will find that most organizations don't understand (or care about) the fine points of active duty vs reserve - if you are deployed then they will not get that picky.  It would be MUCH more straightforward if you were deploying overseas - since very few leases or loans allow you to take a car out of country.   I had to leave a car in the US when I deployed to Germany until it was paid off, in that case I COULD have deferred payments under the S&S Relief Act but never moved the car.  AFAIK only Penfed allows you to take a vehicle out of the country, and I didn't know it then.  It was almost paid for anyway. 

Send them a copy of your orders and ask.  (Don't volunteer too much info)

You will still have to pay out the negative equity, but they usually waive the "penalties" and that is what makes it painful.

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Looking at Swapalease, there are several 2016 Corollas on there with roughly similar terms (around 20 months left, around 1000 miles/month usable) for under $300/month. My guess is that the OP would have to put $1-2k into the deal to get someone to take on the lease.

http://www.swapalease.com/lease/Toyota/Corolla/search.aspx?year=...

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RedWolfe01 said:   danielaaron said:   
bc3000 said:   Does any of this apply to your situation?

http://www.consumerfinance.gov/askcfpb/889/i-am-military-and-i-h...


Yes, but through a loop hole, which they would probably discover and prevent me from following through with the termination. I am in the army reserve right now and my reporting unit is in California where I live, I am being sent from my unit to Northern California for a little over a year, however it's for long term training, I'll still be assigned to my army reserve unit and won't technically be considered active duty.

  
You will find that most organizations don't understand (or care about) the fine points of active duty vs reserve - if you are deployed then they will not get that picky.  It would be MUCH more straightforward if you were deploying overseas - since very few leases or loans allow you to take a car out of country.   I had to leave a car in the US when I deployed to Germany until it was paid off, in that case I COULD have deferred payments under the S&S Relief Act but never moved the car.  AFAIK only Penfed allows you to take a vehicle out of the country, and I didn't know it then.  It was almost paid for anyway. 

Send them a copy of your orders and ask.  (Don't volunteer too much info)

You will still have to pay out the negative equity, but they usually waive the "penalties" and that is what makes it painful.


I'm going to give this a try and pray that it works out. It now seems like my only hope HAHA

Thanks

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letsspendlotsofmoney said:   stanolshefski said:   
fwuser12 said:   
danielaaron said:   I'm leasing a 2016 Toyota Corolla for $397 a month and I want out because I'm leaving for military.
  $397 for a Corolla lease sounds pricey; ~14k over three years. I have not checked priced recently but am assuming a new one can be had for ~20k. 70% of full price for 3 year lease on a Corolla?

  I'm guessing that OP rolled negative equity IMO the contract. I didn't think you could do that, but I think that has to be the explanation. 

  He mentioned poor credit and apparently bad judgement.  The dealer baked in lots of profit and OP signed away.. Nobody will do the swapalease with him. Corollas are a $200-250 month lease all year long and he would need to add $2000 incentive to get someone to consider it. 


At the time of signing I had poor credit and nothing to put down. I just needed a car. I could afford the payments then and I still can now.

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Can you buy out the lease? If your credit is better now you should be able to get a ~1% rate on a used car loan.

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jayK said:   Can you buy out the lease? If your credit is better now you should be able to get a ~1% rate on a used car loan.

The payoff amount in this car is $19,900 and I've had it for about a year. *sad face* do you think buying it out would be a smart option since the car was originally worth 19k to begin with. Forgive my lack of knowledge in vehicle financing

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Swapalease says ~150 /month for that car.

You have 397 with 22 months to go. So unless you are willing to toss in $5500, you aren't going to get any traction on Swapalease. (Especially with 19k left on 22months).

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The Servicemembers Civil Relief Act (SCRA) does not generally apply to your situation since you're not going OCONUS. Worth a call to your finance company to ask if they have any options, just say "Hi, I'm in the Army and going on an X-month deployment. What are my options?" Don't offer up the reserves vs active duty complication nor the location unless they ask. Location can be specified as "northern California for training then not sure where." Some are flexible and some are letter of the law. And at least one company, Infiniti, has actively been bastards about it to colleagues of mine (and were taken to task over it).

In any event, I'd assume you won't get flexibility given the situation you laid out. You owe Toyota ~$6,750 on the car. The car is readily leased for $200/mo all day long, so say it is worth $3,400 to someone over next 17-months. If I happened to need a short-term lease like that, and you were going to come up with say $3k to make it worth my while, I'd consider it. But very unlikely anyone is going to take over that lease without significant sweetener.

Toyota charges a lease disposition fee and an early termination fee. I'd take it to Carmax and see what how their offer compares to the vehicle purchase price from Toyota, it might be less of a financial hit than the $3k it'd likely take to do a lease transfer.

Here's a dozen or so Corolla's for under $200 (some well under) on Swap-a-lease. I don't see yours moving easily, but if you're determined to try
http://www.swapalease.com/lease/Toyota/Corolla/search.aspx?zip=9...

Good luck!

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jarfykk said:   The Servicemembers Civil Relief Act (SCRA) does not generally apply to your situation since you're not going OCONUS. Worth a call to your finance company to ask if they have any options, just say "Hi, I'm in the Army and going on an X-month deployment. What are my options?" Don't offer up the reserves vs active duty complication nor the location unless they ask. Location can be specified as "northern California for training then not sure where." Some are flexible and some are letter of the law. And at least one company, Infiniti, has actively been bastards about it to colleagues of mine (and were taken to task over it).

In any event, I'd assume you won't get flexibility given the situation you laid out. You owe Toyota ~$6,750 on the car. The car is readily leased for $200/mo all day long, so say it is worth $3,400 to someone over next 17-months. If I happened to need a short-term lease like that, and you were going to come up with say $3k to make it worth my while, I'd consider it. But very unlikely anyone is going to take over that lease without significant sweetener.

Toyota charges a lease disposition fee and an early termination fee. I'd take it to Carmax and see what how their offer compares to the vehicle purchase price from Toyota, it might be less of a financial hit than the $3k it'd likely take to do a lease transfer.

Here's a dozen or so Corolla's for under $200 (some well under) on Swap-a-lease. I don't see yours moving easily, but if you're determined to try
http://www.swapalease.com/lease/Toyota/Corolla/search.aspx?zip=9...

Good luck!


I have submitted some type of request with TFS and they told me they would get back with me soon. I'll keep updated

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danielaaron said:   
jayK said:   Can you buy out the lease? If your credit is better now you should be able to get a ~1% rate on a used car loan.

The payoff amount in this car is $19,900 and I've had it for about a year. *sad face* do you think buying it out would be a smart option since the car was originally worth 19k to begin with. Forgive my lack of knowledge in vehicle financing

  
Honestly your best bet is to take the car to Carmax for an appraisal.  They will offer you a thousand or two below market price and you will need to cover the difference between the payoff and their offer to complete the sale.  You can eek out a thousand or two in savings by buying the car outright yourself and selling it private, but that will require $20k.  Doing the carmax way will require ~$5k.

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speedracer714 said:   danielaaron said:   
jayK said:   Can you buy out the lease? If your credit is better now you should be able to get a ~1% rate on a used car loan.

The payoff amount in this car is $19,900 and I've had it for about a year. *sad face* do you think buying it out would be a smart option since the car was originally worth 19k to begin with. Forgive my lack of knowledge in vehicle financing

  
Honestly your best bet is to take the car to Carmax for an appraisal.  They will offer you a thousand or two below market price and you will need to cover the difference between the payoff and their offer to complete the sale.  You can eek out a thousand or two in savings by buying the car outright yourself and selling it private, but that will require $20k.  Doing the carmax way will require ~$5k.


If Toyota does not terminate my lease due to my military orders I'm gonna take it to Carmax. Honestly, I can afford 2k out of pocket right now so hopefully something works out

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danielaaron said:   
speedracer714 said:   
danielaaron said:   
jayK said:   Can you buy out the lease? If your credit is better now you should be able to get a ~1% rate on a used car loan.

The payoff amount in this car is $19,900 and I've had it for about a year. *sad face* do you think buying it out would be a smart option since the car was originally worth 19k to begin with. Forgive my lack of knowledge in vehicle financing

  
Honestly your best bet is to take the car to Carmax for an appraisal.  They will offer you a thousand or two below market price and you will need to cover the difference between the payoff and their offer to complete the sale.  You can eek out a thousand or two in savings by buying the car outright yourself and selling it private, but that will require $20k.  Doing the carmax way will require ~$5k.


If Toyota does not terminate my lease due to my military orders I'm gonna take it to Carmax. Honestly, I can afford 2k out of pocket right now so hopefully something works out

  
Just price out the two directly -- get a buyout quote and a lease termination quote.  (make sure they don't charge tax on the buyout quote if you can, because you will be using a dealer -- if they give you a "dealer buyout" option take that.

Buyout - Carmax  = A    Early lease termination =B  -- pick the lowest of the two.  You can also price the eBay/CL/autotrader private sale route, and you need the other buyout quote for that one that includes taxes.  (taxes are so different that you need to find out which scenario works -- in TX you get taxed AGAIN for the residual value at buyout so early buyouts sting a bit)

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Swap it and you'll lose $$$$

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Make sure Toyota allows transfers during your allotted time. I have 13 months remaining on my GM Financial lease, but I bit the bullet and offered a large incentive for someone to take it over. Nothing yet after about a week with under a month left, as GMF won't do transfers within the last 12 months of the contract. Hoping for the best. GOod luck, OP.

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SCRA does apply to your situation. As mentioned in the consumerfinance.gov link, there are two cases:

  1. Case #1: You are currently on Active Duty. This is not applicable to your situation. Only Case #1 mentions CONUS/OCONUS.
     
  2. Case #2: You entered the auto lease prior to active duty, and then have been called onto active duty for 180 days or longer.  This is applicable to your situation.


You claim that you will not be on Active Duty orders. However, if you are training full-time with the Army Reserves, you should have Active Duty orders. Your orders might say something like:

  1. YOU ARE ORDERED TO ACTIVE DUTY FOR TRAINING (ADT) FOR THE PERIOD SHOWN PLUS ALLOWABLE TRAVEL TIME.
     
  2. YOU ARE ORDERED TO ACTIVE DUTY FOR OPERATIONAL SUPPORT - RESERVE COMPONENT (ADOS-RC) FOR THE PERIOD SHOWN PLUS ALLOWABLE TRAVEL TIME.

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Are there cases of Long Term Training the military that isn't considered Active Duty

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forbin4040 said:   Are there cases of Long Term Training the military that isn't considered Active Duty
  I'd have to say yes, given OP explicitly stated it wouldn't be Active Duty. Unless OP is misinformed. 

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jaytrader said:   
forbin4040 said:   Are there cases of Long Term Training the military that isn't considered Active Duty
  I'd have to say yes, given OP explicitly stated it wouldn't be Active Duty. Unless OP is misinformed. 

  Only in outlier cases.  For example, the US Army hires a Soldier in the Army Reserves as a contractor... the contractor training would not be Active Duty.  Most likely, OP is misinformed.  

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phitchow said:   
jaytrader said:   
forbin4040 said:   Are there cases of Long Term Training the military that isn't considered Active Duty
  I'd have to say yes, given OP explicitly stated it wouldn't be Active Duty. Unless OP is misinformed. 

  Only in outlier cases.  For example, the US Army hires a Soldier in the Army Reserves as a contractor... the contractor training would not be Active Duty.  Most likely, OP is misinformed.  

  
It is important to note that what SCRA considers "Active Duty" and what the ARMY considers active duty (in terms of earning retirement and other direct benefits) are not necessarily the same thing.  Plus there is how resistant the Target of your action (the bank/finance co/ect) is to SCRA.  If they are not resistant then a basic copy of orders and you are done.  If they want to send it to legal and make you fight to claim it then they are very resistant.  

Mainly it is up to the bank to honor it, then if not you can decide what to do.

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